,i #aacth ,,congress #ast ,session ,h4 ,r4 #djg ,,in ,,the ,,house ,,of ,,representatives ,january #bc1 #bjac ,mr4 ,serrano introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a business credit relating to the use of clean-fuel and fuel efficient vehicles by businesses within areas designated as nonattainment areas under the ,clean ,air ,act1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,clean ,vehicles ,incentive ,act of #bjac4 #b4 ,clean-fuel credit with respect to businesses located in nonattainment areas 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to business-related credits7 is amended by adding at the end the following new section3 #de,s4 ,clean-fuel credit with respect to businesses located in nonattainment areas 7a7 ,in general ,for purposes of section #ch1 in the case of an eligible business the clean-fuel credit determined under this section for the taxable year is the sum of-- 7#a7 the clean-fuel property credit1 plus 7#b7 the clean-burning fuel use credit4 7b7 ,clean-,fuel property credit 7#a7 ,in general ,the clean-fuel property credit is the sum of-- 7,a7 qualified vehicle property costs1 plus 7,b7 qualified refueling property costs4 7#b7 ,qualified vehicle property costs 7,a7 ,in general ,for purposes of paragraph 7#a71 the term qualified vehicle property costs means the amount paid or incurred by the eligible business for qualified clean-fuel vehicle property which is placed in service during the taxable year by the eligible business and substantially all of the use of which is in a nonattainment area4 7,b7 ,limitation ,the amount which may be taken into account under subparagraph 7,a7 with respect to any motor vehicle shall not exceed-- 7i7 #h1jjj1 in the case of a motor vehicle with a gross vehicle weight rating of not more than #h1ejj pounds1 7ii7 #bj1jjj1 in the case of a motor vehicle with a gross vehicle weight rating of more than #h1ejj pounds but not more than #ad1jjj pounds1 7iii7 #dj1jjj1 in the case of a motor vehicle with a gross vehicle weight rating of more than #ad1jjj pounds but not more than #bf1jjj pounds1 and 7iv7 #hj1jjj1 in the case of a motor vehicle with a gross vehicle weight rating of more than #bf1jjj pounds4 7,c7 ,qualified clean-fuel vehicle property ,the term qualified clean-fuel vehicle property shall have the meaning given to such term by section #agi;,a7c7 7without regard to paragraphs 7#a77;,a7 and 7#c7 thereof71 except that such term does not include property that is a motor vehicle propelled by a fuel that is not a clean-burning fuel4 7#c7 ,qualified refueling property costs 7,a7 ,in general ,for purposes of paragraph 7#a71 the term qualified refueling property costs means amounts paid or incurred by the eligible business for qualified clean-fuel vehicle refueling property 7as defined by section #agi;,a7d77 which is placed in service in a nonattainment area during the taxable year by the eligible business4 7,b7 ,limitation 7i7 ,in general ,the aggregate cost which may be taken into account under subparagraph 7,a7 with respect to qualified clean-fuel vehicle refueling property placed in service by the eligible business during the taxable year at a location shall not exceed the lesser of-- 7,i7 #aej1jjj1 or 7,,ii7 the cost of such property reduced by the amount described in clause 7ii74 7ii7 ,reduction for amounts previously taken into account ,for purposes of clause 7i77,,ii71 the amount described in this clause is the sum of-- 7,i7 the aggregate amount taken into account under paragraph 7#a77;,b7 for all preceding taxable years1 and 7,,ii7 the aggregate amount taken into account under section #agi;,a7a77#a77;,b7 by the taxpayer 7or any related person or predecessor7 with respect to property placed in service at such location for all preceding taxable years4 7iii7 ,special rules ,for purposes of this subparagraph1 the provisions of subparagraphs 7,b7 and 7,c7 of section #agi;,a7b77#b7 shall apply4 7c7 ,clean-,burning fuel use credit 7#a7 ,in general ,for purposes of subsection 7a71 the clean-burning fuel use credit is the amount equal to #ej cents for each gasoline gallon equivalent of clean-burning fuel used by an eligible business during the taxable year to propel qualified clean-fuel vehicle property4 7#b7 ,clean-burning fuel ,for purposes of paragraph 7#a71 the term clean-burning fuel has the meaning given to such term by section #agi;,a1 except that such term includes compressed natural gas and biodiesel 7as defined by section #dj;,a7d77#a774 7#c7 ,gasoline gallon equivalent ,for purposes of paragraph 7#a71 the term gasoline gallon equivalent means1 with respect to any clean burning fuel1 the amount 7determined by the ,secretary7 of such fuel having a ,btu content of #aad1jjj4 7d7 ,other definitions ,for purposes of this section-- 7#a7 ,eligible business ,the term eligible business means-- 7,a7 a qualified business entity or a qualified proprietorship 7as such terms are defined by section #acig;,c1 determined by substituting nonattainment area for empowerment zone and enterprise zone each place it appears71 and 7,b7 a trade or business located outside of a nonattainment area1 but only with respect to qualified clean-fuel vehicle property used substantially within a nonattainment area4 7#b7 ,nonattainment area ,the term nonattainment area shall have the meaning given to such term by section #aga of the ,clean ,air ,act 7#db ,u4,s4,c4 #geja74 7e7 ,denial of double benefit ,except as provided in section #cj;,b7d77#d71 no credit shall be allowed under subsection 7a7 for any expense for which a deduction or credit is allowed under any other provision of this chapter4 7f7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit under any credit allowable under subsection 7a7 with respect to any property substantially all of the use of which is not in a nonattainment area4 4 7b7 ,credit made part of general business credit ,subsection 7b7 of section #ch of such ,code 7relating to current year business credit7 is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end thereof the following new paragraph3 7#cg7 the clean-fuel credit determined under section #de,s4 4 7c7 ,denial of double benefit ,section #bhj;,c of such ,code 7relating to certain expenses for which credits are allowable7 is amended by adding at the end thereof the following new subsection3 7i7 ,zone clean fuels expenses ,no deduction shall be allowed for that portion of expenses for clean-burning fuel otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section #de,s4 4 7d7 ,credit allowed against regular and minimum tax ,subparagraph 7,b7 of section #ch7;c77#d7 of such ,code 7relating to specified credits7 is amended by striking and at the end of clause 7viii71 by striking the period at the end of clause 7ix7 and inserting 1 and1 and by inserting after clause 7ix7 the following3 7x7 the credit determined under section #de,s4 4 7e7 ,deduction for certain unused business credits ,subsection 7c7 of section #aif of such ,code is amended by striking and at the end of paragraph 7#ac71 by striking the period at the end of paragraph 7#ad7 and inserting 1 and1 and by adding after paragraph 7#ad7 the following new paragraph3 7#ae7 the clean fuels credit determined under section #de,s4 4 7f7 ,conforming amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #de,r the following new item3 ,sec4 #de,s4 ,clean-fuel credit with respect to businesses located in nonattainment areas4 4 7g7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjab4 #c4 ,credit for hybrid vehicles placed in service in nonattainment areas 7a7 ,in general ,subsection 7d7 of section #cj;,b of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,vehicles placed in service in nonattainment area after #bjab 7,a7 ,in general ,no amount shall be allowed as a credit determined under this subsection for any taxable year beginning after #bjab with respect to a new qualified hybrid motor vehicle unless such vehicle is placed in service by an eligible business and substantially all of the use of which is in a nonattainment area4 7,b7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit under any credit allowable under subsection 7a7 by reason of subparagraph 7,a7 with respect to any property substantially all of the use of which is not in a nonattainment area4 7,c7 ,phaseout not to apply ,for purposes of this subsection1 subsection 7f7 shall not apply4 7,d7 ,definitions ,for purposes of this subsection1 the terms eligible business and nonattainment area have the meanings given such terms by section #de,s7d74 4 7b7 ,extension of credit for hybrid vehicles placed in service in nonattainment areas ,paragraph 7#c7 of section #cj7k7 of such ,code is amended to read as follows3 7#c7 in the case of a new qualified hybrid motor vehicle 7as described in subsection 7d77#b77;,b77-- 7,a7 ,december #ca1 #bjji1 and before ,january #a1 #bjac1 or 7,b7 ,december #ca1 #bjab1 and before ,january #a1 #bjah4 4 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjab4